What you need to know

Today might be a day for the history books. Microsoft and Sony just announced a partnership to focus on innovations to "enhance customer experiences in their direct-to-consumer entertainment platforms." This means that the two companies will explore joint development of future cloud technology related to game and content-streaming services. That's not all though, the statement added that the two will also explore the use of Microsoft Azure for Sony's streaming services. In order to grow its online ambitions, Sony needed to partner with an established cloud provider.

Microsoft and Sony will also collaborate on semiconductors and artificial intelligence (AI). When it comes to semiconductors, both parties will focus on image sensors. The statement went on to say that by "integrating Sony's cutting-edge image sensors with Microsoft's Azure... technology... the companies aim to provide enhanced capabilities for enterprise customers." When it comes to AI, the two want to focus on user-friendly experiences which can help customers in their day-to-day lives.

Excited about the opportunities ahead with @Sony for us to pursue our mutual gaming ambitions and delight players around the world. https://t.co/3vBuQiruiR

Sony President Kenichiro Yoshida said the following when discussing the partnership.

Sony is a creative entertainment company with a solid foundation of technology. We collaborate closely with a multitude of content creators that capture the imagination of people around the world, and through our cutting-edge technology, we provide the tools to bring their dreams and vision to reality. PlayStation itself came about through the integration of creativity and technology. Our mission is to seamlessly evolve this platform as one that continues to deliver the best and most immersive entertainment experiences, together with a cloud environment that ensures the best possible experience, anytime, anywhere. For many years, Microsoft has been a key business partner for us, though of course the two companies have also been competing in some areas. I believe that our joint development of future cloud solutions will contribute greatly to the advancement of interactive content.

Microsoft's Satya Nadella also shared a few words about the announcement.

Sony has always been a leader in both entertainment and technology, and the collaboration we announced today builds on this history of innovation. Our partnership brings the power of Azure and Azure AI to Sony to deliver new gaming and entertainment experiences for customers.

It's clear that the focus is definitely on gaming here. It'll be interesting to see what this collaboration produces in the future. This is an exciting time to be a gamer! Who would've thought Microsoft and Sony would come together in such a meaningful way?

Negotiations with Microsoft began last year and were handled directly by Sony's senior management in Tokyo, largely without the involvement of the PlayStation unit, according to people familiar with the matter. Staff at the gaming division were caught off-guard by the news. Managers had to calm workers and assure them that plans for the company's next-generation console weren't affected, said the people, asking not to be identified discussing private matters.

What are your thoughts on this announcement? What do you hope to see from the partnership? Let us know.